The journey from no credit history to establishing credit history


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » The journey from no credit history to establishing credit history

The journey from no credit history to establishing credit history

The content is accurate at the time of publication and is subject to change.
Having money to spend on everything is not an easy task. Many people are often scared to carry around cash in bulk as well. The ideal solution therefore is to opt for credit cards. However in order to get a credit card you need to have credit history. With no credit history, it becomes difficult to convince bankers to give you credit. It is a catch 22 situation, but there are ways to make it easier. If this were the case, then it would be virtually impossible for just about everyone to get a credit card. So if you are struggling to get your first ever card, don’t worry there are loopholes to every rule. When you want a credit card and have no credit history, you need to bear in mind that the important fact is to prove that you are reliable to bankers. Therefore, having the right papers on hand is important. Firstly, you need to have proof of reliable and secure income. Once you can prove to the bank that you have a regular source of income, then getting a credit card becomes easier. It is wiser therefore to look for credit cards from the bank where you have your salaried account. There are many ways to establish some kind of credit history for the banks to rely on. You can start small by opting for store credit cards. These will be easy to get and the amounts are easy to pay off being quite small. There is no shortcut or easy way to establish credit. Like with beginning a job, you need to start small and then work your way up the ladder. Once you have consistent records of paying the amount every month on the store credit card, you can look at applying for a credit card. This will serve to alleviate your no credit history. Another way to deal with no credit history is by going for prepaid or secured credit cards. All you need to ensure is that the prepaid or secured card you opt for will be mailing out statements every month to the credit bureaus. This will help you to establish a credible financial statement for the banks to rely on. With both prepaid and secured credit cards, you can definitely build your credit history easily enough. Since the card is already paid for and your spending power depends on how much you can afford, there is no chance to make mistakes here. When you have no credit history and are looking for ways to improve, then you must start with the right resources. It is important to understand that everyone with credit cards began the same way. Right from the beginning; make sure you pay off whatever money you charge to the card every month. This will automatically ensure you end up with good credit scores. Spending responsibly and learning to use your money carefully will be the stepping stones to establishing a good credit score over time. Once you have good credit history, getting any kind of credit card will be easy.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!